Running a business isn’t always smooth sailing, and circumstances can fluctuate throughout your business growth journey. Finances aren’t always easy to manage, and that’s why funding could be useful for you! This blog will outline grant funding and why it is an option you might want to consider if you’re needing some extra help running your business!
What is grant funding?
Grant funding is usually provided by government authorities or corporations. Unlike business loans, business grants do not need to be paid back and they do not require you to give away a share of your business!
Because of this, obtaining a grant is based upon certain criteria. For example, they are typically awarded to businesses that specialise in economic growth or improving areas of difficulty within society. Grants are more applicable to business proposing to further development and research in their local area.
Grants can be awarded for hundreds to thousands of pounds, but prices can vary between grants so they should not be viewed as solutions to financial difficulty.
What are types of business grants?
- Green grants – Green grants focus on specific objectives like enhancing sustainability, and environmental initiatives. They are also aimed at businesses that want to cut their carbon footprint. Almost £5 billion of funding is available to help UK businesses become greener as part of the government’s commitment to reach net zero emissions by 2050.
- Job creation grants – These grants are aimed at facilitating business expansion by creating more employment opportunities. These are particularly useful for small businesses and can be found in your local area.
- Research and Development grants (R&D) – these grants are offered by the Government to businesses who are looking to research technological, scientific and economic advances. These grants really favour innovation and can be found advertised by science and health institutions.
- Regional grants – Regional grants are about supporting economic growth in specific parts of the UK, where additional infrastructure of some kind is needed.
- Direct grants are those that provide a direct cash sum. However, this money may need to be allocated to a particular purpose or project. They’re usually given to a business to support an initiative. They can range from a few hundred pounds, to as much as £50,000.
- Resource and training grants offer resources like training, mentorship, and workshops, which can be crucial for your business’s growth in addition to the funding. They come in the form of tax reliefs, helping you to maximise your profit margins.
How do I apply for grant funding?
Your eligibility for funding depends on criteria such as the size of your business, where you’re based, the sector you’re in, what you’ll use the grant money for. Application processes can be long and time-consuming and are often very competitive depending on the budget of the grant. It’s also important to bear in mind that some grants are reimbursed to your business after a certain period of time. This means that you need to make sure that you can cover your finances until you receive the money.
To apply for a grant, you will need to prepare an application and outline the reasons your business is worthy of the funding. Including information such as forecasts, financial statements and project proposals will make your application more credible. It is also important to demonstrate the impact of your proposed work after receiving the grant.
Where can I find grants available to me?
There are many ways to search for grant funding that may be available to you. One of the most popular websites is – https://www.find-government-grants.service.gov.uk/grants. Always do your research before making a decision as you want to choose the funding that is most suitable and beneficial for your business.
If you have any queries or need business advice, don’t hesitate to contact us at info@future-cloud.co.uk or give us a call on 01636 337069!
